Correlation Between Sunrun and Kulicke
Can any of the company-specific risk be diversified away by investing in both Sunrun and Kulicke at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Sunrun and Kulicke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Sunrun Inc and Kulicke and Soffa, you can compare the effects of market volatilities on Sunrun and Kulicke and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Sunrun with a short position of Kulicke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunrun and Kulicke.
Diversification Opportunities for Sunrun and Kulicke
Pay attention - limited upside
The 3 months correlation between Sunrun and Kulicke is -0.77. Overlapping area represents the amount of risk that can be diversified away by holding Sunrun Inc and Kulicke and Soffa in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kulicke and Soffa and Sunrun is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Sunrun Inc are associated (or correlated) with Kulicke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kulicke and Soffa has no effect on the direction of Sunrun i.e., Sunrun and Kulicke go up and down completely randomly.
Pair Corralation between Sunrun and Kulicke
Considering the 90-day investment horizon Sunrun Inc is expected to generate 2.43 times more return on investment than Kulicke. However, Sunrun is 2.43 times more volatile than Kulicke and Soffa. It trades about 0.0 of its potential returns per unit of risk. Kulicke and Soffa is currently generating about -0.01 per unit of risk. If you would invest 1,961 in Sunrun Inc on September 2, 2024 and sell it today you would lose (808.00) from holding Sunrun Inc or give up 41.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunrun Inc vs. Kulicke and Soffa
Performance |
| Timeline |
| Sunrun Inc |
| Kulicke and Soffa |
Sunrun and Kulicke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunrun and Kulicke
The main advantage of trading using opposite Sunrun and Kulicke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunrun position performs unexpectedly, Kulicke can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Kulicke will offset losses from the drop in Kulicke's long position.| Sunrun vs. Maxeon Solar Technologies | Sunrun vs. Canadian Solar | Sunrun vs. First Solar | Sunrun vs. Sunnova Energy International |
| Kulicke vs. Ultra Clean Holdings | Kulicke vs. Ichor Holdings | Kulicke vs. Entegris | Kulicke vs. Amtech Systems |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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